Slaughters takes MF Global dispute role; court docs reveal hourly rates
Slaughter and May has been called in to advise on a multimillion-dollar dispute relating to the high-profile liquidation of US broker MF Global. An application by MF Global's trustee, James Giddens, to retain Slaughters as UK counsel was made in the New York courts at the close of last year, with approval subsequently granted.
January 31, 2012 at 06:28 AM
3 minute read
Slaughter and May has been called in to advise on a multimillion-dollar dispute relating to the high-profile liquidation of US broker MF Global.
An application by MF Global's trustee, James Giddens, to retain Slaughters as UK counsel was made in the New York courts at the close of last year, with approval subsequently granted.
MF Global filed for bankruptcy on 31 October 2011, becoming the first company to enter Britain's special administration regime set up to protect market stability in the wake of the 2008 collapse of Lehman Brothers.
Giddens is now attempting to recover customer funds and is facing a dispute with UK administrators KPMG over the release of client money to repay US customers, which, if successful, could significantly reduce returns for UK clients.
The New York court document names Slaughters corporate partner George Seligman as the lead lawyer on the case.
The filing also contains details of Slaughters' charge-out fees for insolvency and bankruptcy work, with hourly rates for partners set at £550, with £450 for senior associates, £325 for junior associates and £125 for trainees and paralegals.
The fees are set at a 20% "public interest discount rate", which is understood to be a common practice in the US for work of this type.
The UK's new special administration regime – which came into effect in February last year – sets out specific objectives for administrators, such as ensuring the return of client assets as soon as possible, and a requirement to either to rescue the subject as a going concern or wind it up in the best interests of creditors.
Weil Gotshal & Manges is acting for KPMG on the administration of MF Global, while Ashurst has advised the Financial Services Authority on the implementation of the terms of the new regime.
Slaughters has taken roles on a number of high-profile administrations in recent years, including advising HM Treasury in relation to UK Government support given to the banking industry, which saw the state take banks such as Northern Rock and Bradford & Bingley into public ownership.
For more on charge-out rates at UK law firms, see City elite give a little ground on fees but some firms still hiking rates.
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